ULSAN < invest Korea

According to Yonhap News,

The signing of a joint investment contract was made on Nov. 13 to transform Ulsan port into a mega-oil hub among three players - Korea National Oil Corporation, SK GAS and Singaporean MOL Chemical Tankers, Ministry of Trade, Industry and Energy (MOTIE) said.

The joint venture agreement (or JVA) aims to build up a chemical tankers capable of processing large barrels of oil and natural gas commercially available. The contract outlines how to allocate the total cost of construction worth KRW 616 billion in the form of joint venture capital and its share, along with legal documents that details the site rental.

Specifically, about 30 percent of the total cost comes from Investor’s fund and 70 percent from project financing. Korea National Oil Corporation, SK GAS and Singaporean MOL Chemical Tankers for the JVA serve as main shareholders of Korea Energy Terminal (KET) project taking each share of 49.5 percent, 45.5 percent and 5 percent respectively.

The KET project covers the future business plan, urging Ulsan petrochemical industry complex to gradually change the proportion of its sales product from petroleum to natural gas.

A report from Korea Development Institute (KDI) estimates that the KET project appears to bring KRW 1.4 trillion worth economic benefits (including gross output KRW 830 billion), while creating 9,600 jobs nationwide.

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Source: Newsis (Nov. 13, 2019)